core sector communique

M/o Road Transport & Highways to Ensure Comliance to Provisions of MV ACT,1988 Mandating Compulsory Third Party Insurance of Motor Vehicles

Ministry of Road Transport & Highways is in the process of identifying vehicles which are not insured against mandatory third party risk with the help of its data base of RCs. Meanwhile, Transport and Police Departments of all States/UTs have been requested to launch a special drive to check and enforce possession of certificate of insurance by all vehicle owners in public place. Department of Financial Services of Government of India, Insurance Regulatory Development Authority, General Insurers’ Public Sector Association (GIPSA) and the General Insurance Council have been requested to extend full cooperation to the State Government authorities and vehicles owners in ensuring successful launch of the special drive aimed at ensuring compliance to the provisions of the MV Act requiring compulsory third party insurance of motor vehicles. Every motor vehicle owner is required to obtain insurance against third party risk in terms of S.146 of Motor Vehicles Act, 1988 (MV Act). S.130 of the MV Act requires that every owner or driver of a motor vehicle shall produce certificate of insurance in respect of the vehicle to the authorized officer of the Motor Vehicles Department. Penalty of imprisonment up to 3 months or fine up to Rs.1000 or both is prescribed under S.196 of MV Act for driving an uninsured vehicle in a public place. Bringing an uninsured vehicle in a public place is not only an offence under the MV Act, it also leads to serious implications in case the vehicle is involved in an accident.